B32—Lancaster Farming, Saturday, February 25,1984 The Milk Check TOM JURCHAK County Agent No Contract Changes Last week the USDA released enrollment information on the Milk Diversion Program and concluded that there would apparently be no reason for modifying contracts. In light of the number of farmers enrolled; the amount of milk to be diverted and the number of dairy cows to be slaughtered because of the program, no changes would be made. However, farmers under contract should receive, by cer tified mail, a letter from ASCS verifying acceptance of their contract before it is official. Total /enrollment for the nation was 37,530 or about 12 percent of the producers. They contracted to reduce production below their base by 9.3 billion pounds or 5.5 percent of the national supply over the next 15 months. They would send 336,796 more cows to slaughter or about 60 percent above normal culling between now and March 31, 1985. This was the average for 15 months but during the first quarter they plan to send twice as many cows to the butcher than they usually do and in the last quarter only 30 percent more. With only a 5.5 percent cut, USDA does not see this as a threat to fluid milk supplies in any market. Neither do they feel that PR' CE C , RUFUS BRUBAKER REFRIGERATION 614 Penryn Rd Southern Service Center R.D. 3, Dry Wells Rd. Quarryville, PA 717-786-1617 MOJONNIER PARTS AVAILABLE USED COOLERS AVAILABLE • 400 & 600 Gal. Mojonnier • 800 Gal. Esco • 600,1000 & 1500 OH Mueller • 400 & 500 Gal. Girton • 1,000 Gal. Zero • Various Types of Inexpensive Tanks! the extra cull cows will seriously affect farm prices for meat. Besides, they have other op portunities for supporting meat prices if needed. Such things as the triggers already in place for limiting beef imports and CCC purchases of meat for school lunch or other commodity programs. At this level of participation, the 50 cent assessment started December 1 to pay for the Milk Diversion Program will about cover the cost if there are no extras for administration. Over the 15 month period ASCS will send about $930 million, at the rate of $lO a hundred, to the 37,530 farmers for an average of $24,780 per farm for reducing production an average of 23 percent below their base. Regional Differences There were big differences, regionally, in participation but not as some expected. Those who were guessing, thought participation would be light in the northeast and midwest but heavy in the southeast and southwest. It didn’t turn out that way. Here in the northeast, participation was below average with Pennsylvania and New York at six and eight percent, with Vermont and New Hampshire at 12 and eight percent. The southeast, southwest and California were ORDER NOW AND SAVE! Special 6-Month Delayed Payment Plan Available... ' s \ 717-665-3525 Northern Service Center Rt. 1, Box 466 Palmyra, PA 717-469-2674 Manheim, PA about at the national average of 12 percent. The big surprise, if there was one, was in the midwest and the lake states. In the midwest, Kansas, lowa and Nebraska ranged from 18 to 22 percent participation and the lake states of Wisconsin, Minnesota and Michigan - all big states in milk production - had 14 to 20 percent participation. So, while it would appear that High Feed Costs? Cows Off Feed? If You Have These Problems And Missed Our Call K.C. DAIRY SERVICE Now Richard Smith, Northampton, Pa., Is On The Way To Solving These Problems With His New Oswalt 230 Mixer! ENSILMIXERS In Stock - Ready For Immediate Delivery! - Our Route Truck Will Service Your Needs Right Sj On The Farm! We At K.C. DAIRY SERVICE Don't Have All The Answers, But We Do Have Some Suggestions... K.C. DAIRY SERVICE RD 2, Box 2332 Mt. Bethel, PA 18343 x ' Livestock Systems there is no threat to fluid milk supplies nationally, local market or individual handlers could have a supply problem but milk probably will not have to move long distances to meet fluid needs. Milk for processing, particularly butter, powder, cheese and condensed milk, will have to fill the gap for fluid use and soft product manufacturing and this is where the shoe will pinch. Processing Cash Flow Problems? Recent Meeting... Left to Right: Dale, Richard & Sam Smith of Northampton, Pa And Dave Correll of K.C. Dairy Service (717) 897-5141 capacity expanded in recent years to accomodate increased production since 1979 may not have the milk supply they have come to expect. However, if we can use the rule of thumb that the reduction in supply will be about half the percent of farmer participation then the greatest reduction of milk supply even in the midwest would be about 10 percent. That could (T urn to Page 833) MUELLER I I Ref i igei a.ted Receiver
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